Honeywell Breakup Would Set the Stage for a Tidy 25% Gain

Honeywell International Inc. executives may have needed nearly eight years and two activists to decide on a breakup, but the wait may be worth it for shareholders, who stand to reap a return of as much as 25% from the move.

The roughly $145 billion industrial conglomerate is poised to split into two businesses focused on aerospace and automation, Bloomberg reported this week. The breakup would follow a pressure push from Elliott Investment Management that echoes a similar campaign in 2017 by Dan Loeb’s Third Point LLC.

Analysts from Bloomberg Intelligence to Barclays Plc put the value of Honeywell’s ...